Question

A man sells two bicycles at Rs. 5,000 each. If he sold one at a gain of 25% and on the whole there is neither profit nor loss, then another bicycle is sold at a loss of:
1. 16.25%
2. 20%
3. 25%
4. 16.67%

Answer 1

Correct Answer - Option 4 : 16.67%

Given:

Selling price of both bicycles = 5000

Percent profit earned on 1^st bicycle = 25%

Overall Profit/loss = No profit no loss or Total C.P = total S.P

Formula used:

Loss = Cost price – Selling price

% loss = (loss/cost price) × 100

Cost price = 100/ (100 + a%) × selling price

Where a% → percent profit

Concept used:

Profit/loss is always calculated on C.P

Calculation:

Total S.P of bicycles = 5000 + 5000 = 10000

% Profit earned on 1^st bicycle = 25%

C.P of 1^st bicycle = 100/(100 + 25) × 5000

⇒ (100/125) × 5000

⇒ 4000

C.P of 2^nd bicycles = 10000 – 4000 = 6000

Loss = Cost price – Selling price

⇒ 6000 – 5000

⇒ 1000

% loss = (loss/cost price) × 100

⇒ (1000/6000) × 100

⇒ 100/6

⇒ 16.67

∴ The percent loss on 2^nd bicycle is 16.67%.